CRNC
Cerence Inc.11.16
+0.02+0.18%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q1 '26
XUI ramps, agent retrofits detailed
Q&A fleshed out XUI ramps starting late summer, with five programs—including three Western OEMs—set to boost backlog in Q2 and revenue in the back half of calendar 2026. The Microsoft mobile work agent drew strong OEM interest for retrofitting two-to-three-year-old vehicles, promising immediate revenue and higher usage versus older systems that taper off. Wins hinged on tech demos, team execution, and customization, not price. EBITDA beat came from $4 million legal savings and deferred comp, reaffirming full-year guide with added confidence. Backlog pops next quarter.
Key Stats
Market Cap
501.52MP/E (TTM)
-Basic EPS (TTM)
-0.43Dividend Yield
0%Recent Filings
8-K
Cerence annual meeting results
Cerence Inc. held its 2026 Annual Meeting on February 12, 2026, where shareholders elected all six director nominees—Kristi Ann Matus, Brian Krzanich, Marianne Budnik, Douglas Davis, Marion Harris, and Marcy Klevorn—with over 98% votes for each amid 10.7 million broker non-votes. Say-on-pay drew mixed support at 16.3 million for versus 4.8 million against. BDO USA PC's auditor ratification sailed through with 32.4 million yes votes.
10-Q
Q1 FY2026 results
Cerence revenue rocketed 126% y/y to $115.1M for Q1 FY2026 ended December 31, 2025, fueled by a $49.5M one-time Samsung IP license while connected services edged up 6% y/y; gross profit soared to $99.4M (86% margin) from $33.1M. Operating income flipped to $29.3M from a $16.9M loss, though G&A spiked on $20.7M legal fees and $7.8M restructuring hit personnel cuts. Diluted EPS held at -$0.12 on 45M shares, matching net loss of $5.2M after $35.3M tax provision; reconciles cleanly. Cash swelled to $92.1M (up q/q), OCF hit $37.9M, FCF $35.6M after $2.2M capex, long-term debt trimmed to $171.9M (1.5% Notes due 2028). Korea drove 50% of sales. Ongoing BIPA litigation poses certification risk.
8-K
Strong Q1, record cash flow
Cerence reported Q1 FY26 revenue of $115.1M, boosted by $49.5M Samsung patent license, with record free cash flow at $35.6M and adjusted EBITDA of $44.6M topping guidance. Cerence xUI gained five major automaker programs; first cars launch 2026. Cash flow hit record highs. Full-year FY26 guidance reaffirmed at $300M-$320M revenue.
8-K
Cerence repurchases $30M notes
10-K
FY2025 results
Cerence's FY2025 revenue fell 24% y/y to $251.8M, with license up 12.7% to $140.6M on higher royalties while connected services crashed 60% post-legacy contract termination. Q4 drove license momentum amid automotive production headwinds, but professional services dipped 21% from standardization. Operating loss narrowed sharply to $2.3M from $580M after ditching FY24's $609M goodwill hit; cash from operations surged to $61M. $210M Notes mature 2028 with $87.5M cash. Backlog grew to $1.2B. Automotive volatility threatens quarterly shipments.
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